Saudi Banks Safe from Troubled US Banks

The Saudi Minister of Economy and Planning participates at the Financial Sector Conference in Riyadh (Asharq Al-Awsat)
The Saudi Minister of Economy and Planning participates at the Financial Sector Conference in Riyadh (Asharq Al-Awsat)
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Saudi Banks Safe from Troubled US Banks

The Saudi Minister of Economy and Planning participates at the Financial Sector Conference in Riyadh (Asharq Al-Awsat)
The Saudi Minister of Economy and Planning participates at the Financial Sector Conference in Riyadh (Asharq Al-Awsat)

Ayman Al-Sayari, Governor of Saudi Central Bank (SAMA), ruled out any transactions between Saudi banks and troubled US banks, affirming that the Kingdom’s banking sector enjoys capital adequacy and reassuring liquidity.

Al-Sayari spoke with Al-Arabiya TV on the sidelines of the Financial Sector Conference in Riyadh when he added that the Kingdom fully believes in the partnership between SAMA and the Financial Sector Development Program.

He noted that the partnership will achieve Saudi Arabia’s Vision 2030 goals by supporting the growth and sustainability of the local economy while preserving the stability and durability of the Kingdom’s financial sector.

Al-Sayari asserted that Saudi Arabia will “continue to move forward.”

He affirmed that the Kingdom would hold the Financial Sector Conference’s third edition as it can catalyze the economy and attract investments, achieving government aspirations.

In his closing speech at the Conference, Al-Sayari asserted that the gathering, directly and indirectly, impacted developing capabilities by exchanging expertise, discussing challenges, and finding ways to overcome them.

Al-Sayari highlighted the broad participation at the conference, adding that it included several local and international financial industry leaders and experts.

Participants, according to Al-Sayari, held several sessions during which they exchanged expertise and reviewed the best international practices.

Moreover, discussions tackled regulation, legislation, and challenges.

Al-Sayari said SAMA and its partners in the Financial Sector Development Program would continue to empower institutions, support the growth of the private sector and the national economy, diversify sources of income, and stimulate savings, financing, and investment.

Saudi Arabia is also working to ensure the retirement system is sustainable, inexpensive, and fair through improving procedures and regulations, said Faisal Alibrahim, Minister of Economy and Planning.

In a panel discussion at the Financial Sector Conference, the minister added that the Kingdom is keen to be proactive to ensure the development of policies aimed at addressing the rise in life expectancy and its consequences in terms of retirement.

Alibrahim indicated that Saudi Arabia is one of the young countries. Still, it is working to address these challenges, noting that the country was also keen to be more flexible with the General Organization for Social Insurance (GOSI) and made several changes to the retirement system.

In the past five years, the Saudi government has taken significant steps to expand and constantly update pension systems, added Alibrahim, noting that pension systems worldwide seek to achieve many goals.

The demographics have changed, he acknowledged, stressing that this requires a review of the pension mechanism and the retirement age.



Egypt Makes Progress in its Nuclear Energy Project

Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)
Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)
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Egypt Makes Progress in its Nuclear Energy Project

Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)
Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)

Egypt has reported significant progress in the construction of the El-Dabaa nuclear power plant in the country’s northwest, a project being developed in cooperation with Russia. The government announced on Tuesday that more than 20% of the project has been completed.

Egypt and Russia signed a cooperation agreement on November 19, 2015, to establish the nuclear power station at a cost of $25 billion, funded through a Russian government loan. The final agreements for El-Dabaa were signed in December 2017.

The plant will consist of four nuclear reactors with a total generation capacity of 4,800 megawatts, each producing 1,200 megawatts. The first reactor is scheduled to begin operations in 2028, with the remaining units coming online gradually as part of Egypt’s energy mix.

In its quarterly performance report, the Egyptian government stated that the project aligns with efforts to expand the peaceful use of nuclear energy within the national power grid.

President Abdel Fattah al-Sisi emphasized in November the importance of executing energy projects efficiently and on schedule, calling them a pillar of Egypt’s development strategy. He underscored the need to adhere to the project timeline while ensuring the highest standards of execution and workforce training.

Also in November, Prime Minister Mostafa Madbouly reaffirmed Egypt’s commitment to the project, stating that El-Dabaa would enhance renewable energy capacity and stabilize the national power grid.

In early March, Russia’s Atomstroyexport announced that construction on the second reactor at El-Dabaa had progressed ahead of schedule. According to the Egyptian Nuclear Power Plants Authority, the second tier of the inner containment structure had been installed at the reactor building.

Egypt experienced widespread power outages last summer, which ended in late July after securing sufficient fuel supplies for its power plants.

The El-Dabaa project is part of Egypt’s strategy to diversify its energy sources, generate electricity to meet domestic demand, and reduce reliance on imported gas and other fuels.

On Tuesday, the government also announced an additional 200 megawatts of private-sector solar power capacity as part of its efforts to expand renewable energy. Officials said the move would support energy diversification and advance the country’s sustainable development strategy.